held title to real estate free of Lamar's claimed leasehold interest. The circuit court granted judgment in favor of Jermar. Lamar now appeals. We affirm.

Background

[¶2] In 1999, James Stadheim entered into a lease with Flack Signs. The lease gave Flack Signs the right to erect three advertising signs on Stadheim's property, and it provided for a ten-year term, ending in February 2009. Thereafter, it " automatically renew[ed]" on a yearly basis. However, the " total of such extensions [was] not to exceed ten years[,]" and the lessee had the right to terminate the lease " at the end of any such yearly extension period." The lease was never recorded. Flack Signs erected two signs on the property, each approximately thirty-feet tall with sign faces of twelve by forty-eight feet. In 2002, Guy Carlson acquired Stadheim's property, but Stadheim retained the rights to the lease payments until 2009. Also in 2002, Lamar Advertising Co. acquired Flack Signs.

[¶3] Carlson first gave a mortgage on the property to Dacotah Bank in 2005. He gave other mortgages to Dacotah Bank over the years; all were cross-collateralized. In 2006, Lamar built a third sign on the property, similar to those previously erected. In 2009, Carlson, believing the lease had terminated, attempted to negotiate a lease with another company for increased annual rent. At some point he became aware of the yearly extensions and entered into a second lease with Lamar instead. Although the first lease would have automatically continued for ten years if Lamar did not terminate it, the new lease provided a term of fifteen years, and removed a clause which allowed the lease to be terminated if the lessor " erect[ed] a permanent, substantial building thereon, requiring removal of the lessee's sign structures[.]" It also provided that the annual rent would increase beginning in 2011.

[¶4] Eventually Carlson listed the property for sale with Al Engstrom. In 2012, Carlson defaulted on the mortgages to Dacotah Bank and entered into an agreement for non-judicial voluntary foreclosure. Either Engstrom or Dacotah Bank gave Jermar a copy of the 2009 lease. A member of Jermar testified at the court trial that the president of Dacotah Bank represented that the lease would be terminated upon foreclosure. A notice of foreclosure and of a right to redeem was mailed to and received by Lamar. However, Lamar chose not to redeem. Jermar purchased the property from Dacotah Bank. Carlson gave Dacotah Bank a warranty deed and Dacotah Bank gave a quit claim deed to Jermar. Both were recorded on October 19, 2012.

[¶5] After Jermar bought the property and asked Lamar to remove the signs, Lamar produced the 1999 lease and claimed it still had a leasehold interest. In response, Jermar filed a quiet title action alleging that the 2009 lease was a novation of the 1999 lease. The circuit court found that the 2009 lease constituted a novation and granted judgment in favor of Jermar. Lamar appeals asserting that the 2009 lease was not a novation, and therefore they continue to ...

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